Seller Stories: Chengdu Genbang Ltd.

Childhood friends Liu Yu and Li Zhi run a dedicated Parts & Accessories (P&A) business, Chengdu Genbang Ltd, on eBay. Operating out of Chengdu, a major Southwestern Chinese city known for its mahjong (a popular Chinese game), hotpot and slow pace of life, the company has seen sales revenue grow month-on-month by 100 percent to USD $200,000 in the two years since its birth.

After finishing his studies in Germany, Liu Yu returned to his hometown, Chengdu, to take over the family business – an established automobile 4S dealership store. The ambitious young man soon discovered the limits of managing a traditional 4S store and decided to embrace ecommerce by opening an eBay storefront.

“eBay was my first choice of platform, as I had used it when studying in Germany,” said Liu. “I also learned that eBay was promoting the P&A category, which closely aligned with the scope of my business.”

The duo’s new undertaking immediately took off. They credit eBay’s account managers for the smooth transition – eBay provided big data guidance and tools that allowed them to capture the specific demands on P&A products from overseas markets.

In a bid to sustain the momentum of growth, they’ve developed three new business strategies:

Enrich their product lines with a monthly launch, while removing less popular products based on eBay’s quarterly sales updates.

Expand to destinations with high-growth potential, including Brazil, Argentina and Russia.

Cater to the demands of established customers by making better use of overseas warehouses.

“With our low labor cost and high profit margins, we’re convinced that our eBay-based business is steering us towards a promising future,” said Liu.